Legislation Document

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §5522(a), Title 29, Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:

(a) An employee shall become eligible to receive a service pension, beginning with the month after the employee has terminated employment, if:

(1) The employee has 5 years of credited service, exclusive of service credited under § 5501(e)(4), (5)

and (12) of this title, and has attained age 62;

(2) The employee has 15 years of credited service, exclusive of service credited under § 5501(e)(4), (5)

and (12) of this title, and has attained age 60;

(3) The employee has 30 years of credited service;

(4) The employee has 25 years of credited service, exclusive of service credited under § 5501(e)(4), (5)

and (12) of this title, regardless of age; or

(5) The employee has 2 5 0 years of credited service, exclusive of service credited under § 5501(e)(4), (5)

and (12) of this title, regardless of age, and is a correction officer or specified peace officer. The employee must have 20 years of credited service as a correction officer or specified peace officer.

Section 2. Amend §5527(a), Title 29, Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:

(a) (1) The amount of the monthly service or disability pension payable to an employee or former employee, not including correction officers or specified peace officers shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1997, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996. If the employee is a correction officer or specified peace officer then the amount of pension would also include 2.45% of his or her final average compensation multiplied by years of service above 25 years. The amount payable to a participant who does not make the additional contribution provided in § 5501(j) of this title for years of credited service before 1977 shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service between January 1, 1977, and December 31, 1996, plus 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1977, provided that the maximum amount based on the service before 1977 is $1,000, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996.

(2) If the employee is a correction officer or specified peace officer then the amount of the monthly service or disability pension payable shall be the sum of the following:

(a) 2.0% of final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the period of credited service prior to January 1, 1997, plus 1.85% of final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in the period of credited service after December 31, 1996 through December 31, 2017, provided that the calculation shall be 2.45% of final average compensation multiplied by years of service above 25 years in the period of service prior to January 1, 2018. plus

(c) 2.50% of final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, up to 20 years, in the period of service after January 1, 2018; plus

(d) 3.50% of final average compensation multiplied by the number of years above 20 years, taken to the nearest twelfth of a year, in the period of service after January 1, 2018.

Section 3. Amend §5543(a), Title 29 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:

(a)(1) Effective January 1, 1998, employee contributions to the Fund shall be 3% of total annual compensation in excess of $6,000 provided, however, that post-2011 employees will pay an employee contribution rate of 5% of total annual compensation in excess of $6,000. In no event shall total compensation during any calendar year in excess of $6,000 be exempt from contributions.

(2) The employee contribution for a correction officer or specified peace officer shall be 5 7 % of annual compensation in excess of $6,000 provided, however, that a correction officer or specified peace officer who is also a post-2011 employee will pay an employee contribution rate of 7% of annual compensation in excess of $6,000.

Section 4. This Act shall become effective following receipt by the Board of Pension Trustees of a legal opinion from the Board’s tax counsel that the provisions of this Act should not have a negative impact on the qualified status of the State Employees’ Pension Plan. Further, upon receipt of such tax counsel’s opinion that there should not be a negative impact on the qualified status of the State Employees’ Pension Plan, the provisions of Sections 2 and 3 will become

effective January 1, 2018 and the eligibility provisions in section 1 would become effective with retirements on or after January 1, 2020.

SPONSOR:	Sen. Ennis & Sen. Walsh & Sen. Lawson & Rep. J. Johnson & Rep. Carson & Rep. Miro
Sens. Cloutier, Lopez, Marshall, Pettyjohn, Poore; Reps. Bennett, Briggs King, Collins, Dukes, Keeley, Kowalko, Lynn, Mitchell, Mulrooney, D. Short, Smyk, K. Williams, Wilson